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How Family Offices Could Shape Philanthropy

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Home Resources Opinion How Family Offices Could Shape Philanthropy

Opinion

How Family Offices Could Shape Philanthropy

John Doe

Singapore has a long history of family philanthropy. The first family foundations were established after World War II and they donated generously to alleviate poverty, care for the vulnerable and build schools and hospitals. Today, there are over 400 foundations and trusts registered with the Commissioner of Charities but families that institutionalized big-ticket giving early on – such as the Lee Foundation and the Lien Foundation – continue to dominate philanthropic giving in Singapore.

Family offices are entities which typically manage assets for or on behalf of a family. And Singapore – well-regulated, transparent and politically stable – is rapidly becoming the region’s preferred choice for family offices. In 2020 alone, approximately 200 single family offices were set up here, doubling the total count. As wealth grows, charitable giving is likely to keep climbing.

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These high-net-worth families have the potential to shake up philanthropy in Singapore. Traditionally, the Asian family office was an extension of the family business, with a laser-sharp focus on the bottomline. “However, as founders age and younger successors take over, we expect to see greater value placed on sustainable and responsible investing as well as on strategic philanthropy,” says our CEO Catherine Loh.

Research firm Wealth-X estimates that $1.9 trillion worth of wealth in Asia will be passed on to the next generation in the coming decade. For many heirs, giving back is emerging as an integral part of doing business. For them, philanthropic activities are an optimal way to build and sustain a family’s legacy, strengthen family cohesion and better engage family members.

But here’s where it gets interesting. “Family offices have the power to shake up traditional philanthropy as they tend to be more agile and responsive compared to large foundations or corporate foundations, which are answerable to multiple stakeholders and layers of decision makers. Secondly, family businesses tend to be built by entrepreneurs and disruptors, making them more open to new ways of doing things,” says Catherine.

What this means is that the new wave of family-driven philanthropy could fund untested, possibly radical new approaches to problems. It could find innovative ways of harnessing capital for social impact. It could move away from cheque book charity to a more engaged approach which could lean towards social enterprises or private-public initiatives.

However, while most family offices across the globe are engaged in some form of giving back, only 41% of them have a philanthropic strategy in place, notes the Milken Institute. Few family offices have the in-house expertise to evaluate nonprofits, deploy philanthropic dollars optimally, or monitor and measure impact.

“At CFS, we believe giving should be thoughtfully planned and driven by evidence-based insights,” says Catherine. As a cause-neutral philanthropy advisor, CFS offers unparalleled access to over 400 charities in Singapore, across a diverse range of sectors. We conduct due diligence to ensure the giving is accountable and creating a social impact.

For family offices, a cost-effective and flexible way to embark on philanthropy is to set up a donor-advised fund (DAF). Since 2008, CFS has set up close to 200 DAFs: of these, almost half have been for families. We pool donor funds for investment management and with over $90 million in assets at any one time, smaller individual funds can reap the economies of scale that large foundations enjoy. Beyond this, as the country’s largest convener of philanthropic activities, we mobilise donor capital through collaborations and collective models to scale up impact and generate more empowering solutions.

If you would like to find out more about how CFS can help you achieve your giving goals, please click here.

References:

June Lee (January 2019) Exploring Family Philanthropy in Singapore – Asia Centre for Social Entrepreneurship & Philanthropy, National University of Singapore https://wings.issuelab.org/resources/34346/34346.pdf
EDB Singapore (February 2022) How Singapore is Becoming Asia’s Family Office Hub https://www.edb.gov.sg/en/business-insights/insights/how-singapore-is-becoming-asia-s-family-office-hub.html
Richard Newell (March 2022) New study sees Singapore as top family office hub – Asian Investor https://www.asianinvestor.net/article/new-study-sees-singapore-as-top-family-office-hub/476226
Milken Institute (June 2021) Philanthropy in a Family Office https://milkeninstitute.org/article/philanthropy-family-office

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Stories Of Impact

Strengthening Social Services: The Bluejacket Foundation’s Commitment to Capacity and Capability Building

October 8, 2024

Charities often struggle to secure funding for capacity and capability building, as donors tend to prioritise direct programme support over long-term infrastructure development. Yet, enhancing these areas is crucial for sustaining financial health, delivering effective and reliable services, and increasing their overall impact. Recognising this, the Community Foundation of Singapore (CFS) partnered with the Bluejacket Foundation in November 2022 to launch a two-year pilot initiative—the Capacity and Capability Building Grant—designed to support growth of charities and equip them for greater community contributions.

Charity partners and donors from Bluejacket Foundation gathered at Society for the Aged Sick for a roundtable discussion.

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The grant currently supports six charities, assisting them in retaining and recruiting essential talent, optimising resources, boosting efficiency, and expanding their impact.

The Bluejacket Foundation’s Mission

The Bluejacket Foundation was established by a family-owned shipping business, with ‘Bluejacket’ being a nod to sailors’ traditional blue uniforms. During the pandemic, their business persisted due to the relentless efforts of their crew, many of whom were stuck on ships for up to a year because of restrictions. Reflecting this dedication, the Foundation seeks to aid the committed individuals who work hard to keep charities and non-profits’ engines running.

As Mr. Teo, the Foundation’s representative explained, “In partnership with the Community Foundation of Singapore, the Capacity and Capability Building Grant supports the development and retention of talent, ensuring charities have the essential workforce to carry out their vital work.”

Bridging the Gaps: A Roundtable on Charity Needs

The roundtable highlighted benefits and key gaps in current funding options.

To help the donors gain deeper insights into the evolving needs of the social service sector, CFS organised a roundtable discussion between the Bluejacket Foundation and the charities supported by the grant. At the discussion, charities candidly shared their experiences with existing funding options, highlighting both the benefits and the critical gaps that need to be addressed.

Charities in Singapore have access to various grants, such as the Community Silver Trust (CST), the Career Conversion Programme for Social Workers (CCP), the Professional Capability Grant (PCG), the Care and Share Grant, and the Community Capability Trust (CCT). These grants support workforce training, staff development, and organisational growth, which have been extremely helpful for enhancing service delivery and building organisational capacity.

However, despite the available funding opportunities, certain needs remain unmet:

Increasing Need for Robust Backend Services: Existing grants usually focus on front-end programmes and manpower training. As services expand and governance requirements increase, charities face challenges in maintaining robust backend support systems, including HR, IT, finance, fundraising, and marketing. Manpower in these areas is often strained as a result.
Securing Long-Term Funding in a Competitive Philanthropic Landscape: While government grants provide valuable financial assistance, charities must sustain themselves once the funding ends. Smaller charities, in particular, struggle to secure long-term funding in a competitive philanthropic environment.
Attracting Quality Leadership in the Social Services Sector: Effective leadership is essential for the sustainable development and growth of charities. However, attracting and retaining top-tier talent in C-level positions within the social services sector remains challenging due to compensation that often lags behind other industries. While many charity leaders bring invaluable passion and operational expertise, they may lack the broader leadership skills required to effectively manage and guide a charity organisation.

A Sustainable Solution: Many-Helping Hands Approach

It is clear that as the sector continues to evolve, a many-helping-hands approach—involving ongoing collaboration between charities, donors, and the government— is crucial in driving long-term sustainability and effectiveness. While government grants provide support, creating a diversified funding model is essential for long-term success. By fostering talent development and providing additional financial support, initiatives like the Capacity and Capability Building Grant can enable charities to focus on delivering their core missions, enhancing service quality, and addressing emerging community needs.

CFS is proud to be part of this journey of improving the social services sector alongside the Bluejacket Foundation.

Get Involved

CFS is a leading provider of donor-advised funds in Singapore, working with donors to establish and manage funds that align to their values. Contact us to learn how your support for charitable causes can make a greater impact.

References

Ang, B. L. (2016, February 22). Capacity and Capability Building. Ministry of Social and Family Development. https://www.msf.gov.sg/what-we-do/odgsw/social-insights/2016-Capacity-and-Capability
Khalik, S. (2024, February 14). Salary guidelines to help community care sector be more competitive in retaining talent. The Straits Times. https://www.straitstimes.com/singapore/salary-guidelines-for-community-care-sector-to-help-it-be-more-competitive-in-getting-workers

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Stories Of Impact

Empowering Her Dream: International Women’s Forum Singapore Aids Young Fashion Designer’s Success

John Doe

Denise Yeo was juggling two part-time jobs while studying full-time for a degree in Fashion Design & Textiles at LASALLE College of the Arts. So, she was overjoyed when she received an education grant from the International Women’s Forum Singapore (IWF). “The money meant I could divert more time to my studies,” says the 23-year-old student.

Funding her degree has been a struggle. Her father is disabled in both legs and cannot work. Her mother works in a restaurant and Denise’s elder sister, who looks after their father, had to take out a loan from her Central Provident Fund savings to help Denise pay for her tuition fees.

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The $4,500 IWF grant has let her cut back on her working hours in her crucial final year. It also helped fund her graduation project – a collection of six looks inspired by the whimsical, playful nature of clowns – which is critical to building a career in fashion. “Fashion involves a lot of money and time,” says Denise, who graduates in April 2023. The financial security allowed her to devote more time to designing her collection and invest in better quality fabric and trimmings.

Denise is already crafting a name as a designer to watch. In 2021, the articulate and talented young lady won the Men’s Folio Designer of the Year competition. She plans to start a brand of her own and pursue a master’s degree and a PhD. Grateful for how the IWF grant positively impacted her, Denise hopes more philanthropic support can be extended to students in the creative arts.

The annual grant came from the IWF Singapore Education Grants Fund, a donor-advised fund (DAF) which IWF set up in 2014 with the Community Foundation of Singapore (CFS). IWF is an invitation-only network of accomplished women dedicated to advancing women’s leadership and championing gender equality. It strongly believes in nurturing the next generation of women by providing access to education and mentorship.

The IWF Singapore Education Grant aims to support deserving young women in any field, in any educational institution in Singapore. Beneficiaries are typically students between the ages of 17 to 35 who are applying or studying for a diploma or degree at a local polytechnic or university, and who are at risk of dropping out due to financial challenges.

Aside from monetary aid, the grant seeks to equip these students with life skills and guidance on career choices. This is done with the help of the Young Women’s Leadership Connection, a mentorship programme initiated by Mrs Arfat Selvam, Managing Director of law firm Duane Morris and Selvam LLP. For IWF, partnering with CFS has been the ideal way to fulfil its specific philanthropic goals. As Singapore’s only community foundation, CFS is a leader in philanthropy advisory and grantmaking, and will celebrate its 15th year of connecting donors with opportunities to make impact in 2023. Tapping into its deep roots in the community, CFS helped IWF navigate unmet needs in the educational sector, backed by its solid knowledge of local institutes of higher learning and data such as the cost of education.

With the help of CFS, IWF looks for students with grit – those who strive to excel in their chosen field. Beyond that, it also seeks out students with a strong desire to make a difference to their community and who show empathy for the less fortunate. In Denise’s case, what helped her stand apart was her commitment to sustainability.

While working in F&B, she gained an appreciation for managing waste, recycling and thoughtful sourcing of materials. This prompted Denise to weave in elements of eco-consciousness into her designs. She opts for natural fabrics, instead of synthetic ones, and is creating outfits that can be worn in many different ways, to improve their lifespan.

In 2021 alone, the IWF fund supported grants to 31 students in tertiary institutions. Since its inception, the IWF has awarded a total of 143 grants to 127 unique young women from 13 local institutions. Through its long-running generosity and tireless mentoring, the IWF has made a lasting impact on the lives of numerous young women.

Establishing a DAF with CFS is a seamless, cost-effective and flexible way for donors to embark on their very own giving journey. As a one-stop philanthropic centre, CFS tailors each DAF to a donor’s motivations and handles the tax, legal, reporting, governance and fund management requirements. This is all carried out at minimal cost. Backed by 14 years of experience and counting, CFS is honoured to be the leading provider of DAFs in Singapore today.

For more on how CFS can help you on your philanthropic journey, please visit this page.

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News

The Straits Times – More wealthy donors setting up private charity funds

John Doe

More wealthy people are setting up private charity funds through which they can give away their riches, according to a foundation that helps such individuals set up the funds.

The Community Foundation of Singapore (CFS) said it has seen the number of individual donors rise from seven in 2008 to 97 this year. Each of the funds must have at least $200,000.

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The benefactors are getting younger, too. There was just one under the age of 50 in 2008 when the foundation was set up, but the number has soared to 39 this year.

The number of charity funds under the foundation’s care rose from seven in 2008 to 110 this year. A charity fund can support several causes over a longer period of time compared to a straight-up, one-time donation to a charity.

Said foundation chairman Laurence Lien: “We observe that donors are not waiting till retirement age to start thinking about philanthropy and giving back.”

The foundation was set up and registered as a charity in 2008 as a vehicle to boost philanthropy among Singapore’s growing number of millionaires. It helps the donors set up the funds, look for suitable beneficiaries and disburse the money over a period of time. The donors get to name their funds and decide what causes to support.

When the foundation started, five donors – three individuals, Swiss Bank UBS AG and the Khoo Foundation – gave $13 million in total to kick off the foundation.

The individuals were property developer Simon Cheong, retired businessman William Bird and businessman Stanley Tan.

The total donations raised by the foundation through these private charity funds crossed the $100 million mark this year.

From 2008 to 2013, the foundation handed out $12 million in grants to about 130 charities. By this year, it gave out five times more money – $60 million – to 400 charities.

Besides donating more money, donors are also asking more questions and getting involved by volunteering in the charities they give to, Mr Lien noted.

“Philanthropists today are increasingly sophisticated,” he said, adding: “They look for more involvement and greater accountability for their donations. They want to find out who they are truly helping and whether programmes can be sustained after funding ends.”

Such donations from wealthy individuals are expected to grow. “We think that there are many latent givers in Singapore – those who want to give more but do not know how, so they end up putting off their giving,” he said.

There are about 152,000 millionaires in Singapore, according to the Credit Suisse Research Institute’s 2017 Global Wealth Report. A millionaire is a person whose net worth – assets minus debt – is worth more than one million dollars.

The trend of more younger people donating to charity is not restricted to millionaires.

The National Volunteer and Philanthropy Centre (NVPC), the national body that promotes volunteerism and philanthropy, said its survey showed that those between 35 and 44 donate more than those in other age groups.

“The mid-lifers, dubbed as ‘Generation Stretched’, are still giving in spite of the various demands in life,” said NVPC chairman Mildred Tan.

While younger people may be donating more, she added: “We hope to motivate and encourage people to continue giving throughout their lives.”

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现年92岁的胡锦盛是最年长的参赛者。自2017年退休后，他几乎每天都到活跃乐龄中心报到，从此爱上了玩拉密，每次可玩上三个小时，在中心是“常胜将军”。

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News

Media release: CFS and NVPC initiate cross-sector collaborative effort to help disadvantaged young persons in Singapore

John Doe

Partnership between CFS and NVPC formed Colabs, to drive collaboration among the public, private and social sectors to tackle complex social issues
First series tackles social mobility of disadvantaged young persons in Singapore

Singapore, July 2, 2018– The Community Foundation of Singapore (“CFS”) and the National Volunteer & Philanthropy Centre (“NVPC”) have partnered to catalyse collaboration among the public, private and social sectors.

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The Funding Network (TFN)

Colabs, an initiative by CFS and NVPC, drives collaboration by bringing together philanthropists, businesses, non-profits and sector experts to share knowledge, exchange ideas and co-create solutions. More than 100 representatives from 56 stakeholders took part in the first Colabs series that focused on the needs of disadvantaged young persons. These comprised government ministries, statutory boards, multi-national corporations, private companies, foundations, individual philanthropists, academics and non-profit organisations.

In addition, CFS and NVPC have released a guide to provide funders from various sectors of society with practical ways to help disadvantaged young persons in Singapore. The guide, titled ‘A Call for Collaborative Giving: Closing the Gap for Disadvantaged Young Persons’, capturesinsights uncoveredby the diverse group of stakeholders who met to discussthe issues, and outlines clear recommendations for collective action.

“Collaboration is the way forward, as the scale, scope and complexity of social issues today makes it impossible for a single player or the government to solve alone,” said CFS Deputy Chief Executive Officer Joyce Teo. “By leveraging our shared expertise, skills and resources, collaborative partnerships offer donors opportunities to bring about more impactful social change.”

NVPC Director of Strategic Partnership Darrel Lim elaborated: “While there are numerous programmes by organisations to address current issues, there are still gaps, challenges, and constraints faced by beneficiaries and social services. Colabs is a platform which brings together like-minded stakeholders to learn and share insights, uncover gaps in the current system and collectively devise ways to plug these gaps.”

The Colabs series on disadvantaged young persons focused on whether education is a game changer for improving their social mobility. Over the course of eight months, participants shared and heard from sector experts, beneficiaries, and donors. Through roundtable talks, workshops, as well as a field trip and poverty simulation exercise, participants learnt about the challenges that prevent disadvantaged young persons from doing well in life, and the types of support currently available.

Elaine Loo, Director of Central Youth Guidance Office, Ministry of Social and Family Development, commented, “Colabs connects stakeholders across the various sectors to facilitate the sharing of perspectives and nudge collective efforts to address issues that our children and youth are facing today. Networks such as these are useful platforms that allow public agencies to hear directly from stakeholders, including our private sector partners.”

Colabs participants found that while education can help bridge social gaps, not every child can fully tap into the benefits that education can bring. Economic, social, and cultural differences also contribute to a greater degree of variance in Singaporean students’ academic performance compared to students from other countries[1], and social gaps may widen if disadvantaged young persons here are not given the help they need.

Disadvantaged young persons here face multiple challenges. Parents tend to work long hours or hold shift jobs, leaving little time to attend to their children’s learning needs. They often shoulder more adult responsibilities[2]. This can result in poorer literacy development and academic performance, and may lead to psychological issues such as depression and other conditions[3].

“It is difficult to have a ‘one size fits all’ solution because circumstances vary from person to person. Instead, harnessing collective expertise towards providing a variety of support structures with the capacity to consider unique individual needs will result in greater, longer lasting impact,” noted Benjamin Teo, social worker and Centre Director at SHINE Children & Youth Services.

The Colabs guide outlines three different levels on which aspiring changemakers can make a difference through philanthropy and/or volunteerism. Firstly, there are programme-level initiatives which affect young persons directly. These involve supporting new programmes or enhancing existing ones. Secondly, there are organisational-level initiatives that target to strengthen non-profit organisations’ capacity and capabilities; these can significantly impact outcomes across many programmes. Lastly, funders can choose to invest resources on sector-level initiatives that will impact the wider ecosystem, such as the development of multi-stakeholder data sharing platforms. More details can be found on pages 10 to 13 of the guide, which can be downloaded here.

A second Colabs series focusing on persons with disabilities has concluded and a third Colabs series focusing on seniors will commence later this year.

END

About Colabs
Colabs is a philanthropic initiative by the National Volunteer and Philanthropy Centre and the Community Foundation of Singapore. It drives collaboration by bringing together the public, private and social sectors to tackle complex social issues. It enables philanthropists, businesses, non-profits and sector experts to collectively build insights and co-create solutions for lasting change.

About the Community Foundation of Singapore
The Community Foundation of Singapore (“CFS”) is a non-profit organisation founded in 2008 to encourage and enable philanthropy in Singapore. We match donors’ interests with causes and offer ways for them to make a greater impact through their charitable funds. We also collaborate with charity partners to identify and develop programmes that support diverse communities. Our purpose is to create real and meaningful change while building a philanthropic culture in Singapore. CFS is a registered charity with Institution of a Public Character status.

About the National Volunteer & Philanthropy Centre
The National Volunteer & Philanthropy Centre is an independent not-for-profit organisation that advocates giving in Singapore. Our vision is for Singapore to be a Giving Nation and to cultivate a strong culture of contribution where giving is part of every Singaporean’s DNA. We work closely with charities, corporates, public sector agencies, institutions as well as the community to build a robust ecosystem to make giving simple, fun and meaningful.

[1]According to the most recent Programme for International Student Assessment (“PISA”) international survey by the Organisation for Economic Co-operation and Development (“OECD”). The latest PISA survey results show that ESCS differences account for 16.8%, 17.0%, 15.1% of the variance in Singapore students’ performance in science, reading, and mathematics, compared to the OECD average of 12.9%, 11.9%, and 13.0%, respectively.

[1] Mathews, M. & Chan, C. (2015). Empowering Low-income Families: Documenting the Contributions of Family Excellence Circles (FEC)

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John Doe

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.
L.S., a volunteer with the Reading Odyssey programme @ Spooner Road